Your firm is contemplating the purchase of a new $$542,500$

computer$-$based order entry system. The system will be depreciated

straight$-$line to zero over its five$-$year life. It will be worth

$$48,000$ at the end of that time. You will save $$168,000$ before

taxes per year in order processing costs, and you will be able to

reduce working capital by $$43,000$ at the beginning of the project.

Working capital will revert back to normal at the end of the

project. If the tax rate is $40$ percent, what is the IRR for this

project?